Pension reform from the Cabinet: benefits less, work more

The retirement age will not increase, the already granted pensions will asurement, preferential pensions will cancel all but the military, working pensioners the pensions will be paid in full, and the introduction of personal pension accounts will be delayed again. These are the main provisions of the government’s pension reform, approved yesterday Prime Minister Vladimir Groisman. The reform bill will soon submit to the Verkhovna Rada. Experts endorse the proposals of the Cabinet, but say they expected more. Details of the pension found revolution “Today.”

THE PROPOSALS OF THE CABINET. As the Prime Minister, the government is not going to raise the retirement age for those who are still working. He, recall, is 60 for men and 58 years for women. Introduces the possibility of those who do not have at least a minimum length of service entitling to a retirement pension (25 years for women and 35 for men), to “buy” the experience, paying to the Pension Fund insurance contributions, but not more than 5 years of experience. This 704 UAH per month, 8448 UAH per year or a maximum of 42 240 UAH for 5 years. As an example, Groisman gave myself.

“The retirement age is 60 years for persons with an insurance period of 25 years, — he explained. — I’m 39 years old, have insurance periods 23 years. In 2 years I will reach the required figure. There are people who have not enough experience of the work itself. And this is a huge problem. They will be able to retire at 63 years (with seniority from 15 to 24 years 11 months. — Ed.) and if people have less than 15 years of strajitza in 65 years (the norm the Cabinet wants to introduce from 1 January 2019. — Ed.). But for the majority of citizens, 70% of people nothing will change — will be 60 years”, — said Groisman.

For people working in harmful conditions on the list of professions No. 1 and No. 2 (miners, metallurgists, chemists and several dozen professions) is saved and early retirement, and other benefits. In this case, the employers will have to pay for them increased a single sotsvznosov, but for the workers themselves, nothing will change.

But teachers, doctors, agronomists, machine operators, machinists 1 January 2018 want to deny the possibility of retirement on superannuation without the right to work in the specialty, if the person worked 30 years or more and has attained the age of 50 years. Also with 2019, the Cabinet proposes finally to open personal savings accounts for workers from the lists №1 and №2 under the age of 35 years. For the rest it is going to move from 2018 to 2019, although in March planned introduction of panscheel for all 35 years or younger. The Prime Minister explained another postponement by the need to first achieve a balanced budget for the PF, what you cannot do for 10 years any Cabinet.

OCTOBER 1. But the modernization of pensions from October 1 will be exactly. The government plans to convert them annually adjusted for inflation and wage growth. We recall that pensions were not modern to 5 years, and the citizens with the same amount of insurance and the same wages, but with different years of retirement can differ by 2.5 times. The Cabinet promises an end to this injustice, highlighting the 12 billion UAH.

Also from this date, promise to abolish the rule about reducing pensions by 15% for working pensioners. Another “candy” — early rising social standards from 1 October instead of 1 December. This will allow to raise the minimum pension to UAH 1312 1373.

EXPERTS. In General, experts positively assess the program of the Cabinet. “Until the government fulfills promises — to modernize the pension since October and doesn’t improve pensworth — told us the former Deputy head PF Viktor Kolbun. — But I hope that during the submission of the bill on pension reform in Parliament, the deputies will make amendments about introduction of personal peschlow cumulative from January 1, 2018. It is impossible to pull further. Unfortunately, we have to take unpopular measures, like the abolition of privileged pensions, because the population is aging, contributions to the pension Fund is not enough.”

By the way, the “social” Deputy Prime Minister Pavlo Rozenko also confirmed that he considers necessary the introduction in 2018, without waiting for a balanced budget for the PF. Otherwise, according to him, in 5-7 years it will be possible to pay only the minimum pension.

And the head of social programs of the Institute “Socio-economic research” Marianna Onufryk notes: to implement savings accounts Cabinet needs time, that’s probably why the start of the 2nd level incretory postponed to 2019. “It is proposed to introduce cumulative isproperly for lists # 1 and # 2. For these individuals will be included dostavka from employers in 15% and 7% of ERUs, respectively. And condition will work for individuals up to 35 years. These proposals will affect a small number of employees. It may be the first steps to implement the complete program for savings accounts. And the project for 2019 is postponed, obviously because it is necessary to create Honkabilly the Fund through which the system will work”, — said Onufryk. The expert says: though the concept of incretory already approved in the Cabinet, it can be corrected. “The concept developed as the bill will stipulate the national Council of reforms, and then, most likely, it will be published so that experts could make suggestions,” she says. According to her, the Cabinet expects that the bill will give to BP in the summer to the people’s representatives could make it in two readings before the session in July.

EDITS FROM THE IMF. The reform corresponds to the Memorandum with IMF and there was no objection to the Fund’s representatives arrived in Kiev for talks. This was announced by the us expert on pensions RPR Vitaliy Melnychuk. We will remind, earlier there was information that the Fund’s recommendation to raise the retirement age and opposes the modernization of pensions and other proposals of the Cabinet, insisting on the abolition of early retirement for certain categories of workers. According to Melnichuk, the bad, that again postponed the introduction of universal retirement accounts.

And the expert Marianna Onufryk said that some details of reform will be discussed with the IMF mission. In particular, the question of the purchase of insurance: the IMF offers you to set threshold not more than two years, not five as proposed by the Cabinet. “The sides hope to reach a consensus,” said Onufryk.